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HomeMy WebLinkAbout2006-04-05 STAFF REPORTS 5A ppLM SA �0 4� 2 U N k C * IIORAiEO 4u A Cg41FORN�P CITY COUNCIL STAFF REPORT AIPRIL 5, 2006 NEW BUSINESS Subject: 2006/2007 CITYWIDE ANNUAL MAINTENANCE DISTRICTS, PROPOSITION 218 NOTICING AND BALLOTING SERVICES CONTRACT From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY On July 20, 2005, the City Council approved the Final Engineer's Reports for the City's various Maintenance Districts, several of which are operating with a deficit, with operating costs exceeding the maximum allowable assessments that can be levied. As a part of Council's approval was direction to the City Engineer to schedule Property Owner Protest Ballot Proceedings for fiscal year 2006/2007 for a second attempt to address increased assessments for those Maintenance Districts that require continued subsidy of General Plan revenues. Staff has prepared a Contract Services Agreement for Proposition 218 Noticing and Balloting Services that will be necessary to proceed pursuant to previous Council direction. RECOMMENDATION: 1;i Adopt Minute Order No. "APPROVING AGREEMENT NO. WITH MUNI FINANCIAL, IN THE AMOUNT OF $9,800.00, FOR PROPOSITION 218 NOTICING AND BALLOTING SERVICES FOR VARIOUS CITY OF PALM SPRINGS LIGHTING AND PARKWAY MAINTENANCE DISTRICTS;" and 2) Provide the City Engineer with direction regarding the potential results of Proposition 218 noticing and balloting; and 3) Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: In accordance with the Streets and Highways Code of the State of California, the City is required to prepare Engineer's Reports on the annual costs to operate and maintain Item No. C .A. City Council Staff Report April 5, 2006- Page 2 2006/2007 Citywide Maintenance Districts— Proposition 218 Services improvements within the City's various Street Lighting or Parkway Maintenance Districts, which include: 1. Street Lighting Maintenance District No. 1 (Belardo Road Area - 165 Properties) 2. Street Lighting Maintenance District No. 2 (McManus Drive - 25 Properties) 3. Street Lighting Maintenance District No. 3 (Crossley Tract- 75 Properties) 4. Street Lighting Maintenance District No. 4 (Eagle Way Area- 43 Properties) 5. Parkway Maintenance District No. 6A (Fairport Development - 23 Properties) 6. Parkway Maintenance District No. 6B (Parkside Estates - 93 Properties) 7. Parkway Maintenance District No. 6C (Park Sonora Tract - 30 Properties) 8. Parkway Maintenance District No. 7 (Sunrise Norte Tract - 53 Properties) 9. Parkway Maintenance District No. 8 (Vintage Palms Tract - 64 Properties) 10. Parkway Maintenance District No. 9 (Flora Vista Tract - 77 Properties) 1'I. Parkway Maintenance District No. 10 (Mountain Gate — 308 Properties) The City Council's adoption of the Final Engineer's Reports for seven of the City's eleven Maintenance Districts last year continued subsidy of General Fund revenues from the 2005/2006 fiscal year budget to operate the following Maintenance Districts, with the total cumulative deficit for each District indicated as shown: DISTRICT DEFICIT (as of 6/30/05) Street Lighting Maintenance District No. 1 $20,267 Street Lighting Maintenance District No. 2 $10,720 Street Lighting Maintenance District No. 4 $11,419 Parkway Maintenance District No. 6B $9,811 Parkway Maintenance District No. 6C $22,623 Parkway Maintenance District No. 8 $33,368 Parkway Maintenance District No. 9 $19,676 Total cumulative General Fund subsidy (as of 6/30/05) $127,884 City Council directed the City Engineer to schedule Property Owner Protest Ballot Proceedings for fiscal year 2006/2007 for a second attempt to address increased assessments for those Maintenance Districts that require continued subsidy of General Fund revenues. Staff had previously held Property Owner Protest Ballot Proceedings for the 2004/2005 fiscal year, but none of the proceedings were successful. Following City Council's direction, staff has coordinated with MuniFinancial to offer Proposition 218 noticing and balloting services. A contract services agreement is recommended for Council's consideration, at an amount of $9,800. Although this contract does not require Council approval, it is staff's recommendation that this action be brought for Council consideration, with direction to be given to the City Engineer regarding the proposed Property Owner Protest Ballot Proceedings. C6ty Council Staff Report April 5, 2006 - Page 3 2006/2007 Citywide Maintenance Districts— Proposition 218 Services Other local agencies have encountered similar situations where older Maintenance Districts, established prior to Proposition 218, now operate with expenses exceeding the maximum allowable assessment that can be levied in accordance with Proposition 218. Most Maintenance Districts established prior to Proposition 218 did not include a mechanism to automatically increase the maximum annual assessment to cover increasing costs, usually linked to the Consumer Price Index. This was due to the fact that, at that time (prior to Proposition 218), local agencies were allowed to increase assessments to cover estimated costs without the need to hold an election. This fact changed with passage of Proposition 218. After passage of Proposition 218, as operating costs increase, the allowable revenue that may be collected remains constant, causing a cumulative increase in the "gap" of revenues necessary to cover annual operating expenses. As can be seen above, the City is legally unable to recover annual operating expenses from the seven Maintenance Districts, resulting in a cumulative General Fund subsidy of approximately $128,000. It is staff's recommendation that with each Maintenance District operating with a deficit, that Property Owner Protest Ballot Proceedings in accordance with Proposition 218 be held to increase the maximum annual assessments within each District to cover the current estimated annual operating expenses, as well as to recover the estimated 2005/2006 deficit; and to establish an annual CPI escalator to allow the maximum annual assessment to be automatically increased each year by the CPI. Should the election proceedings support increased assessments in all of the Districts, the City would recapture approximately $24,500 of the cumulative total General Fund subsidy of $128,000 to date. However, it is likely that some or all of the Proceedings in the Districts will fail to support any increase of assessments. In that event, it is necessary for the City Engineer to receive direction from the City Council for what should occur in the event increased assessments from the residents within each District are not approved. Regarding Lighting District No. 1, the improvements within this District are continually failing, as the lighting system was constructed almost 40 years ago, and replacing or repairing the aging system is impossible due to an inability to find replacement parts that are compatible to the system. As this District has an existing deficit, there is no surplus of funds available with which a new lighting system may be designed and installed. Eventually, this system will become inoperable, and unless a neighborhood initiated request to self-fund its replacement occurs, this District may require dissolution at the time when the system fails. The neighborhood had previously expressed an unwillingness to self-fund a complete replacement of the old lighting system, after informal canvassing by a neighborhood representative in coordination with Engineering Department staff. Although the Public Works Department maintenance staff has the ability to obtain some fixtures and parts to repair broken lights, ultimately the system itself will fail. At that time, unless the neighborhood approves a substantial increase in assessments necessary to cover the cost to replace the entire lighting system (estimated at $500,000 or more), the choices for City Council to make are to fund City Council Staff Report April 5, 2006- Page 4 2006/2007 Citywide Maintenance Districts—Proposition 218 Services replacement of the lighting system, or abandon it all together. At this time, annual operating expenses exceed the annual maximum assessment by approximately $1,000; approval to increase the maximum annual assessment will allow staff to continue to maintain this system in its current operating status, without the need to subsidize the District with General Fund revenue. Regarding Lighting District No. 2, this District was established to cover expenses for operating and maintaining a few street lights along McManus Drive between Saturmino Derive and Sunset Way, for 25 properties. If increased assessments are not approved by the residents, the choices for City Council to make are to continue to subsidize the annual operating and maintenance expenses with General Fund revenue; or to have the street lights removed and to have the District abandoned. Regarding Lighting District No. 3, this District was established to cover expenses for operating and maintaining street lights along Lawrence Street and Marguerite Street within the Crossley Tract, for 75 properties. If increased assessments are not approved by the residents, the choices for City Council to make are to continue to subsidize the annual operating and maintenance expenses with General Fund revenue; or to have the street lights removed and to have the District abandoned. Regarding Lighting District No. 4, this District was established to cover expenses for operating and maintaining street lights along Birdie Way, Divot Lane, Eagle Way and Par Drive, for 43 properties. If increased assessments are not approved by the residents, the choices for City Council to make are to continue to subsidize the annual operating and maintenance expenses with General Fund revenue; or to have the street lights removed and to have the District abandoned. Regarding Parkway District No. 6B ("Parkside Estates"), this is a Parkway Maintenance District for landscape maintenance of existing parkways along Avenida Evelita and Calle San Raphael, where homes have rear yards abutting these streets (a total distance of approximately 1,000 feet). It appears that at the time this District was established, more extensive parkway landscaping may have existed along these streets. However, at some point in the past, a new sidewalk was constructed along the parkway, removing most of the previous landscaping. The only landscaping that remains, and is maintained as a part of this District, are several street trees. Annual operating expenses include approximately $2,000 for the City's landscape maintenance Contractor (currently PacWest) and $125 for irrigation, as well as incidentals and administrative costs, for a total of approximately $3,500. The current maximum annual assessment is $1,818. If increased assessments are not approved by the residents in this District, the choices for City Council to make are to continue to subsidize the annual operating and maintenance expenses with General Fund revenue; or to have the street trees removed and replaced with sidewalk, and the District abandoned. Regarding Parkway Districts No. 6C, 8, and 9, all of these are parkway landscape improvement Districts for various neighborhoods. It is difficult to decrease the City's City Council Staff Report April 5, 2006- Page 5 2006/2007 Citywide Maintenance Districts—Proposition 218 Services operational expenses to a degree that the maximum annual assessments will cover current and future increased expenses. It is certainly possible to reduce the City's schedule for landscape maintenance, and decrease the amount of irrigation; however, the result will likely be the same as if the City discontinued maintenance efforts altogether — the landscaping would become unsightly, overgrown, and eventually deteriorate. If increased assessments are not approved by the residents, the choices for City Council to make are to continue to subsidize the annual operating and maintenance expenses in these Districts with General Fund revenue; or to cease the City's maintenance of the parkway landscaping, and to have the Districts abandoned. At that time, obligation for maintenance of the parkway landscaping in these various neighborhoods would become the responsibility of the residents of these neighborhoods, and not the City. FISCAL IMPACT: IFinance Director Review: The proposed Contract Services Agreement will require an additional $1,400 allocated to each of the seven Maintenance Districts, for a total contract amount of $9,800, from the following accounts: 001-4301-43600, 001-4301-43610, 001-4301-43630, 001-2451- 43540, 001-2451r3550, 001-2451-43570, and 1n1-43580. David J. Barakian Thomas J. Wilso Director of Public Works/City Engineer Assistant City anager David H. Ready, CiQa'" ager ATTACHMENTS:1. Agreement, 2. Minute Order CONTRACT SERVICES AGREEMENT FOR PROPOSITION 218 NOTICING AND BALLOTING SERVICES CITY OF PALM SPRINGS LIGHTING AND PARKWAY MAINTENANCE DISTRICTS (SHORT FORM) THIS CONTACT SERVICES AGREEMENT (herein "Agreement") is made and entered into this & — day of /7F�arzcit a by and between the CITY OF PALM SPRINGS, a municipal corporation (herein "City")and Muni Financial (herein "Contractor'). NOW, THEREFORE, the parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Contractor shall perform the work or services set forth in the "Scope of Services" attached hereto as Exhibit"A"and incorporated herein by reference. Contractor warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner. 1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses,Permits, Fees andAssessments. Contractorshall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "B" and incorporated herein by this reference, but not exceeding the maximum contract amount of Nine Thousand Eight Hundred and No/100 Dollars ($9.800.00) ("Contract Sum"). 2.2 Method of Payment. Provided that Contractor is not in default under the terms of this Agreement, Contractor shall be paid as outlined in Exhibit 'B" Schedule of Compensation. 3.0 COORDINATION OF WORK 3.1 Representative of Contractor. Jim McGuire is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith. 3.2 Contract Officer. Marcus Fuller is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith ("Contract Officer"). The City Manager of City shall have the right to designate another Contract Officer by providing written notice to Contractor. 3.3 Prohibition Against Subcontracting or Assignment. Contractor shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein -1- maybe assigned or transferred,voluntarily or by operation of law,without the prior written approval of City. Any such prohibited assignment or transfer shall be void. 3.4 Independent Contractor. Neither the City nor anyof its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it, or any of its agents or employees, are agents or employees of City. 4.0 INSURANCE, INDEMNIFICATION AND BONDS 4.1 Insurance. The Contractorshall procureand maintain,at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance: (a) Commercial General Liability Insurance. A policy of commercial general liability insurance written on a per occurrence basis with a combined single limit of at least $1,000,000 bodily injury and property damage including coverages for contractual liability, personal injury, independent contractors, broad form property damage, products and completed operations.The Commercial General Liability Policy shall name the City of Palm Springs as an additional insured in accordance with standard ISO additional insured endorsement form CG2010(1185) or equivalent language. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in an amount which fully complies with the statutory requirements of the State of California and which includes $1,000,000 employer's liability. (c) Business Automobile Insurance. A policy of business automobile liability insurance written on a per occurrence basis with a single limit liability in the amount of $1,000,000 bodily injury and property damage. Said policy shall include coverage for owned, non-owned, leased and hired cars. (d)Additional Insurance. Additional limits and coverages, which may include professional liability insurance, will be specified in Exhibit A. All of the above policies of insurance shall be primary insurance. (Reference Section 4.4 regarding sufficiency.) The insurershall waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents, and their respective insurers. In the event any of said policies of insurance are canceled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4.1 to the Contract Officer. No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance, endorsements or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance, endorsements, or binders are approved by the City. The contractor agrees that the provisions of this Section 4.1 shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor's activities orthe activities of any person or persons for which the Contractor is otherwise responsible. In the event the Contractor subcontracts any portion of the work in compliance with Section 3.3 of this Agreement the contract between the Contractor and such subcontractor shall require the: subcontractor to maintain the same polices of insurance that the Contractor is required to maintain pursuant to this Section. -2- 4.2 Indemnification. Contractor agrees to indemnify the City,its officers,agents and employees against,and will hold and save them and each of them harmless from, any and all actions,suits,claims,damages to persons orproperty,losses,costs, penalties,obligations,errors, omissions or liabilities,(herein"claims or liabilities")that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work,operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the negligent acts or omissions of Contractor hereunder,or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement,whether or not there is concurrent passive or active negligence on the part of the City, its officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents or employees, who are directly responsible to the City, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal Costs and attorneys'fees incurred in connection therewith; (b) Contractorwill promptly pay anyjudgment rendered against the City, its officers,agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the eventthe City,its officers,agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys'fees. 4.3 Performance Bond. Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of this Agreement, in the form provided by the City, which secures the faithful performance of this Agreement, unless such requirement is waived by the Contract Officer. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement. 4.4 Sufficiency of Insurer or Surety. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, railed"A"or better in the most recent edition of Best's Key Rating Guide or in the Federal Register, unless such requirements are waived by the City Manager or designee of the City Manager due to unique circumstances. In the event the City Manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City,the Contractor agrees that the minimum limits of the insurance policies and the performance bond required by this Section 4 may be changed accordingly upon receipt of written notice from the City Manager or designee; provided that the Contractor shall have the right to appeal a determination of increased coverage bythe City Managerto the City Council of Citywithin ten (10)days of receipt of notice from the City Manager. 5.0 TERM 5.1 Term. Unless earlier terminated in accordance with Section 5.2 below, this Agreement shall continue in full force for one year from the date of execution. 5.2 Termination Prior to Expiration of Term. Either party may terminate this Agreement at any time,with or without cause, upon thirty(30)days written notice to the other party. -3- Upon receipt of the notice of termination, the Contractor shall immediately cease all work or services hereunder except as may be specifically approved by the Contract Officer. In the event of termination by the City, Contractor shall be entitled to compensation for all services rendered prior to the effectiveness of the notice of termination and for such additional services specifically authorized by the Contract Officer and City shall be entitled to reimbursement for any compensation paid in excess of the services rendered. 6.0 MISCELLANEOUS 6.1 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 6.2 Non-liability of City Officers and Emplovees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 6.3 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any moneyor other consideration for obtaining this Agreement. 6.4 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid,first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, CITY OF PALM SPRINGS, P.O. Box 2743, Palm Springs, California 92263, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. 6.5 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 6.6 Intee ration:Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels anyand all previous negotiations,arrangements,agreements and understandings,if any,between the:parties,and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 6.7 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 6.8 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. -4- A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 6.9 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a partyto any action or proceeding in anyway connected with this Agreement,the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable,shall be entitled to reasonable attorney's fees,whether ornot the matter proceeds to judgment. 6.10 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that(i)such party is duly organized and existing, (ii)they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii)by so executing this Agreement, ;such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. SIGNATURES ON NEXT PAGE -5- IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above. CITY OF PALM SPRINGS ATTEST: a municipal corporation By: By: City Clerk City Manager APPROVED AS TO FORM: By: MuniFinancial CONTRACTOR: Check one:_Individual_Partnership XXCorporation Corporations require two notarized signatures: One from each of the following: A. Chairman of Board, President, or any Vice President:AND B.Secretary,Assistant Secretary,Treasurer,Assistant Treasurer,or Chief Financial Officer). a / OL By: /� S"—igriiature`TnDwrz�j= Signature(notanze )� Name: Frank G.Tripepi Name: Roy L. Gill Title: President and CEO Title: Secretary :State of f I State Coun ISS county of ? I �ss o9o �rore me, 0 ^ � On Jbefore me 1 personalyappearedper3nafyapJed B"t' C -Jrersonally known to me ( of personally known to me retisfaclic idenoe)to be the persons)whose name(s)is to be the personN)whose names)is/are subscribed to the within instrument and acknowledged to me subscribed to the within instrument and acknowledged to me that he/she/ihey executed the same in his/her4heir authorized that he/She/they executed the same in his/her/Brew authorized capacily(ies), and that by his/heAheir signature(e)-on the capacity(tei and that by his/heT/thek signature(s) on the instrument the person(, }or the entity upon behalf of which the instrument the person(,or the entity upon behalf of which the person(s).acted,executed the instrument. person(&�acted,executed the instrument. WITNESS my hand ang official seal. WITNESS my hand and official seal. Notary Slgnatur : UQ Notary Slgnature' f`'+%`mil'- �-\ 7�—L Notary Seal: Notary Seal: +" CATHALEEN D STEELE '"""rr.; ARLENE ROMANELLI 6My Commission# 1483234 Commission# 1389859 z Notary Public-California z • Notary Public - California >_ Orange County pt '' Los Angeles County Comm.Expires Apr 13,2008 7 Ivry Comm.Expires Jan 10,2007 9•av�x� -6- EXHIBIT "A" SCOPE OF WORK This contract provides the City of Palm Springs with Proposition 218 Noticing and Balloting Services related to the proposed assessment increases for seven(7)of the City's existing districts formed pursuant to the Street Lighting Act of 1931 and the Landscaping and Lighting Act of 1972. Contractor shall perform the following services to provide Proposition 218 Noticing and Balloting Services for the proposed assessment increases in fiscal year 2006/2007 related to the City's following Districts: (Lighting District No. 1 - Belardo Road Area; Lighting District No. 2 - McManus Drive; Lighting District No. 4 - Eagle Way Area; Parkway Maintenance District No. 6B- Parkside Estate; Parkway Maintenance District No. 6C - Park Sonora Tract; Parkway Maintenance District No. 8-Vintage Palms; and, Parkway Maintenance District No. 9- Flora Vista. Collectively, these seven (7) districts consist of approximately 500 parcels. Task 1: Review Documentation Contractor shall review City-provided documentation, background materials and assessment data regarding the proposed assessment increases that will be necessary for preparation ofthe required notices and ballots. Contractor shall rely on the City to provide information related to the improvements, budgets, the methods of apportionment and assessments for both the previous fiscal year(2005/2006), and the proposed assessments to be balloted for fiscal year 2006/2007. One (1) telephone conference call with City staff shall be included with regarding the districts' background and issues,content of the notice and to secure relevant documentation for Contractor's rE.view. Task 2: Develop Database Contractor shall use the base electronic assessment data provided by the City and the latest property owner information from the County Assessor's Office secured roll to establish a mailing database for the project.As warranted,Contractorshall incorporate updated ownership and mailing information provided by the City. When finalized, this parcel specific data will be electronically merged with the public workshop notices, public hearing notices and ballots to be prepared and mailed to each affected property owner. If requested,Contractor shall provide the City with a copy of this mailing database. Task 3: Prepare Notices and Ballots It is anticipated that this project will require two (2) separate mailings to each of the affected property owners. The first mailing will be a notice of the time and place that City staff will be conducting a property owner workshop for each district(Workshop Notice);the second mailing will be the actual notice of the public hearing and ballots required by Proposition 218 (Notice/Ballot). Contractor shall prepare a draft(template)of each of these three(3)documents and present them to City staff for review and comment prior to the actual mailing. The Workshop Notice will be a single page double-sided piece that prominently identifies the time and place of the planned property owner workshop and a list of questions and answers frequentlyasked by property owners regarding assessments and the balloting process. The Notice/Ballot to be mailed to each affected property owner will be prepared in accordance with the requirements of Proposition 218. -7- Task 4: Draft Resolutions Utilizing the City's format for resolutions, Contractor shall draft six (6) resolutions for the City Council to adopt in conjunction with the balloting process. All seven (7) of the districts will be addressed as a group in each of the resolutions, rather than six (6)separate resolutions for each district. For the Intent Meeting — the Resolution Initiating Proceedings; Resolution Preliminarily Adopting the Engineer's Report(proposed assessment increase); and the Resolution of Intention (that sets the public hearing and calls for mailed ballots). For the Public Hearing — Resolution Declaring Results of the Ballots; Resolution Approving the Engineer's Report (as submitted or amended); and Resolution Ordering the Levy and Collection of Assessments. Contractor shall provide copies of draft resolutions to City staff for review. Task 5: Mail Notices and Ballots Contractor shall be responsible for preparing the mail merge, printing and first-class mailing of the workshop notice and required public hearing notices and protest ballots. Contract compensation includes all printing, supplies and postage expenses associated with the mailings. The required notice and ballot will be mailed to each property owner of record at least 45 days prior to the scheduled public hearing and will include a return envelope for ballots (return postage not provided). We rely on the latest property owner information from the County Assessor's Office for mailing information and will not be responsible for tracking or updating addresses or re-mailing any undeliverable notices and ballots. Task 6: Tabulate Ballots Contractor shall attend one (1) public hearing and coordinate with the City Clerk to tabulate the ballots.Contractor shall use its independent software program that quickly and accurately tabulates all ballots submitted up to and at the close of the Public Hearing. Special Notes: Section 4.3, Performance Bond, is waived. In accordance with Section 4.1 (d), a policy of$1,000,000 of professional liability insurance shall be provided. -8- EXHIBIT "B" SCHEDULE OF COMPENSATION The total maximum not to exceed contract sum of$9,800.00 shall be compensated no more than monthly, as determined by City approved invoices indicating a `Percentage Complete" of the required services, up to a maximum of 75%of the total contract sum. Compensation for services considered more than 75% complete shall be compensated upon completion of all services required (or 100% complete). -9- MINUTE ORDER NO. APPROVING AGREEMENT NO. WITH MUNI FINANCIAL, IN THE AMOUNT OF $9,800.00, FOR PROPOSITION 218 NOTICING AND BALLOTING SERVICES FOR VARIOUS CITY OF PALM SPRINGS LIGHTING AND PARKWAY MAINTENANCE DISTRICTS I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order approving Agreement No. with Muni Financial, in the amount of $9,800.00, for Proposition 218 noticing and balloting services for various City of Palm Springs Lighting and Parkway Maintenance Districts, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 5th day of April, 2006. James Thompson, City Clerk